John Cridland, CBI

"We have seen major steps by both the government and the Bank of England to support the economy and the financial system. These will be welcomed by business and will help the economy at a critical time. We also applaud the coordinated interest rate cuts by key central banks, which will stabilise financial markets."

Roger Bootle, economist

"Exceptional circumstances require exceptional measures and I expect today's interest rate cut to be the first of a series of moves taking rates down to 2.5%. In fact, they may have to fall to, or below, their all-time low of 2%.

"Coupled with the announcement of the government's plans to inject £50bn of capital into the UK's largest banks, it is to be hoped that the move will provide at least some short-term support to the financial markets and banking sector.'

Brendan Barber, TUC

"It is vital that the vast sums of taxpayers' money are used to change bank behaviour, not just bail them out. They must start to lend to business again and must cut the cost of borrowing. Most importantly, the government must make sure banks can never gamble with peoples' livelihoods again. A very different banking system must emerge at the end of this."

Dick Saunders, Investment Management Association

"There is a liquidity problem, a bank solvency problem and a confidence problem. These measures are positive. Whether or not the sums are sufficient, hinges on the extent to which the banks have accurately valued their assets. This uncertainty needs to be addressed to restore confidence."